AUD/USD near term outlook is negative – Commerzbank

The prospect for AUD/USD still remains on the negative side in the short term, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“AUD/USD came under increasing downside pressure last week following its recent rejection from the 200 day moving average and the three month resistance line at .7527/50. The market has reached the 61.8% retracement at 0.7382 and our target remains the base of the triangle at .7294 - this is a MAJOR break down point for the AUD”.

“The repeated failure in the .7750/.7836 region turns the market from the topside of a converging range and leaves it heading to the base of the range offered by the 2016-2017 support line at .7287. This is expected to eventually break down”.